New Silk Road for Eurasia: Export and Cooperation Potential Development

On June 8, 2016 a business meeting was held at Samsung Electronics Rus Kaluga, Vorsino industrial park to discuss the development of New Silk Road logistic project development. The meeting was attended by Alexey Laptev, First Deputy Governor of Kaluga Region, federal ministries and agencies’ officials, top managers from Russian Railways OAO, Industrial Logistics OOO, as well as from Samsung Electronics Rus Kaluga.

The third container train with components for Samsung Electronics Rus Kaluga plant arrived from Dalian to Vorsino (Freight Village Vorsino transport and logistics center) on June 7, 2016.

The attendees discussed the future development of New Silk Road logistic project. For instance, they spoke of the current status of cargo transportation, tariffs applicable to the Russian section of the route, increasing the number of trains serving the route on regular basis as well as provision of a range of logistics services to Kaluga Region companies.

Alexey Laptev said that it would be very important from the strategic point of view to develop New Silk Road for Eurasia project, while balancing export and import cargo flows. He pointed out: “”Markets expansion, development of horizontal ties between industrial clusters, promotion of partnership and cooperation, export potential development are the objectives, which may be successfully attained under the international logistic project”.

It was pointed out that European partners were interested in expansion of the route. According to Alexey Laptev, the number of container trains was to be increased to 4-6 per month. More and more companies join the project. For instance, Continental plans to supply its products to China and further, to Korea. The names of new project participants are to be announced shortly.

Apart from that, the attendees also discussed tariff regulations governing the Russian part of the route. Alexey Laptev said: “In the Russian territory fares are much lower than those applicable in China and Europe. More cargo flow translates into lower tariffs”.

It is worth mentioning that the first New Silk Road container train departed on January 27, 2016 and arrived to Vorsino on February 5. It took only 9 days and 5 hours to cover the distance of over 7,500 km. The project helps reduce the delivery time for cargos and goods supplied from China to the Central Russia and Europe, and, correspondingly, to China and Asian countries by three times. The new international logistic corridor is less expensive as compared to alternative options.